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Metro Market Update - 4th Quarter 2017

13 Feb 18

2017 certainly ended on a high note – with a brand new record median price and a surge in sales across the board.

Following the release of the Valuer- General’s median house price data for the 2017 December quarter, REISA President, Mr Alex Ouwens said that the latest figures were encouraging for property owners and heralded in a new record median price of $465, 000 and almost a 10% increase in sales from the previous quarter.

In the December quarter, 4, 395 houses settled across the Adelaide metropolitan area and 5, 821 across the whole State – significant increases from the previous quarter.

REISA President, Mr Alex Ouwens said “What a fantastic way to have closed the year. The median price keeps going from strength to strength and hit an all-time high of $465, 000 last quarter. Adelaide is a magnificent place to invest due to its consistency. It is also fantastic to see that sales have picked up across all sectors of metropolitan Adelaide as well as the whole State. Traditionally the final quarter of the year is a refreshing boost after a cold long winter. These figures are pleasing and we expect a similar growth path for the rest of 2018 and interstate investor interest is at an all-time high”.

“REISA recently sent its 2018 election submission to all political parties in South Australia. We repeated our concerns about the monstrous stamp duty taxation which traps home owners or would-be home owners, land tax and general issues concerning housing affordability. We look forward to some active and robust discussion on these important issues” Mr Ouwens said.

Suburbs which have seen the largest growth over a 12 month period were Colonel Light Gardens, Seacliff Park and Walkley Heights. Other big movers included Beaumont, Port Noarlunga and Blackwood. Top selling suburbs in terms of recorded sales over the December quarter were the unstoppable Number 1 Morphett Vale, Aldinga Beach and Mawson Lakes. Other top performing suburbs included Paralowie, Hallett Cove and Happy Valley.

“It always comes down to affordability. And this is why the State Government must take our submission seriously. When the price is right, when investors can see a great opportunity, when infrastructure is right, the market is also right. More sales ultimately means more revenue for the Government. People are living in their homes for 11+ years now whereas a decade ago the average was 6.5 years. There has to be a system in place that encourages home ownership fluidity – not strangles it. South Australians are trapped in inappropriate housing for their circumstances” Mr Ouwens said.

More broadly, the December quarter statistics showed that South Australia recorded growth of 2.44% compared to the same quarter last year and growth of 1.20% from the previous quarter.

Sales of units and apartments were also up across metropolitan Adelaide – 10% from the previous quarter Growth in the unit and apartment market was also up - 4.29% from the previous quarter and a fantastic 8.79% from the same quarter last year.

“I am chuffed at these results. A record median price and a significant upswing in sales volumes clearly demonstrate the underlying strength and resilience of the South Australian real estate sector. I am confident that sales will continue to do well and that South Australia will cement its position as one of the best places in the world to live” Mr Ouwens said.